April 14, 2022—Rate Cut – Forbes Advisor

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For anyone in the market looking to buy or refinance a home, now is a good time to lock in a low rate. Mortgage rates fell today and remain at historic lows.

To date, the average rate on a 30-year fixed mortgage is 5.12% with an APR of 5.14%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 4.36% with an APR of 4.39%. On a 30-year jumbo mortgage, the average rate is 5.01% with an APR of 5.02%. The average rate on a 5/1 ARM is 3.54% with an APR of 4.49%.

Related: Compare current mortgage rates

30-Year Fixed-Rate Mortgage Rates

The average rate fell on a 30-year fixed mortgage, slipping to 5.12% from 5.20% yesterday. Today’s rate is below the 52-week high of 5.20%.

The APR on a 30-year fixed is 5.14%. This time last week it was 5.10%. The APR is the overall cost of your loan.

At the current interest rate of 5.12%, borrowers with a $100,000 30-year fixed rate mortgage will pay $544 a month in principal and interest (taxes and fees not included), according to the Forbes Advisor Mortgage Calculator. . You would pay approximately $95,905 in total interest over the life of the loan.

15-Year Fixed-Rate Mortgage Rates

Today, the 15-year fixed mortgage rate is at 4.36%, higher than it was yesterday. Last week it was 4.21%. Today’s rate is above the 52-week low of 2.28%.

On a 15-year fixed term, the APR is 4.39%. Last week it was 4.25%.

A $100,000 15-year fixed rate mortgage with a current interest rate of 4.36% will cost $758 per month in principal and interest. Over the term of the loan, you will pay $36,414 in total interest.

Giant Mortgage Rates

On a 30-year jumbo, the average interest rate is 5.01%, lower than it was on the same date last week. The average rate was 5.03% at the same time last week. The 30-year fixed rate on a jumbo mortgage is currently above the 52-week low of 3.03%.

Borrowers with a 30-year fixed-rate jumbo mortgage with a current interest rate of 5.01% will pay $537 per month in principal and interest per $100,000. This means that on a $750,000 loan, the monthly principal and interest payment would be approximately $4,031, and you would pay approximately $701,069 in total interest over the life of the loan.

5/1 ARM interest rate

On an ARM 5/1, the average rate rose slightly to 3.54% from 3.52% yesterday. The average rate was 3.43% last week. Today’s rate is currently above the 52-week high of 3.50%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 3.54% will pay $451 a month in principal and interest.

How to calculate mortgage payments

If you can’t or don’t want to pay cash, mortgage lenders and mortgages will be part of your home buying process. It’s important to figure out what you’ll likely pay each month to see if it’s within your budget.

Using a mortgage calculator can help you estimate your monthly mortgage payment based on your interest rate, purchase price, down payment and other expenses.

Here’s what you’ll need to calculate your monthly mortgage payment:

  • house price
  • Deposit amount
  • Interest rate
  • term of the loan
  • Taxes, insurance and all HOA fees

What you can afford depends on a number of factors, including your income, debt, debt-to-equity ratio, down payment, and credit score.

You should also factor in closing costs, property taxes, insurance costs, and ongoing maintenance costs.

The type of loan you choose can also affect how much home you can afford. When shopping for a loan, consider whether a conventional mortgage, FHA loan, VA loan, or USDA loan is best suited for your particular situation.

Get pre-approved for a mortgage

Getting pre-approved for a mortgage can help you through the home buying process. A mortgage pre-approval is a lender’s offer to lend you money. It can help you appear more attractive to sellers.

To get pre-approved for a mortgage, start by gathering documents. You will need your Social Security card, W-2 forms, pay stubs, bank statements, tax returns, and any other documents required by your lender.

The lender you select will guide you through the pre-approval process.

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